The Australian government has said it will debate toughening parole laws later this week.

"I think the public are entitled to expect that people who present that level of danger to the public, and who have a terrorism background, there should be a presumption against bail or parole except in a very clear case," Attorney-General George Brandis told the ABC.

However, the chairman of the Adult Parole Board said it was not informed Khayre was on a terror watch list.

"We had been told nothing about him that would indicate any suggestion of risk," Peter Couzens told Macquarie Radio.

"Had we been told, we would have acted."

Last month, an Australian coroner criticised a decision which allowed bail to a gunman behind Sydney's deadly cafe siege in 2014.